An Emerging Coal Development Company
AGM Presenta7on November 2011
Cau7onary Statement
The informa,on contained in this document (Presenta7on) has been prepared by NuCoal Resources NL and Doyles Creek Mining Pty Limited (Company). This Presenta,on does not cons,tute an offer or invita,on to any person to subscribe for or apply for any securi,es in the Company.
While the informa,on contained in this Presenta,on has been prepared in good faith, neither the Company or any of its shareholders, directors, officers, agents, employees or advisers give any representa,ons or warran,es (express or limited) as to the accuracy, reliability or completeness of the informa,on in this Presenta,on, or of any other wriIen or oral informa,on made or to be made available to any interested party or its advisers (all such informa,on being referred to as ‘Informa,on’) and liability therefore is expressly disclaimed. Accordingly, to the full extent permiIed by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or limited, contractual, tor,ous, statutory or otherwise, in respect of, the accuracy or completeness of the Informa,on or for any of the opinions contained in this Presenta,on or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presenta,on.
Neither the issue of this Presenta,on nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any inaccuracies in, or omissions from, this Presenta,on which may become apparent. The right is reserved to terminate any discussions or nego,a,ons with any person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connec,on with any appraisal or inves,ga,on of the Company. In furnishing this Presenta,on, the Company does not undertake or agree to any obliga,on to provide the recipient with access to any addi,onal informa,on or to update this Presenta,on or to correct any errors.
This Presenta,on should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presenta,on is made available must make its own independent assessment of the Company aOer making such inves,ga,ons and taking such advice as may be deemed necessary. In par,cular, any es,mates or projec,ons or opinions contained in this Presenta,on necessarily involve significant elements of subjec,ve judgment, analysis and assump,ons and each recipient should sa,sfy itself in rela,ons to such maIers.
This Presenta,on may include certain statements that may be deemed ‘forward‑looking statements’. All statements in this discussion, other than statements of historical facts, that address further ac,vi,es and events of developments that the Company expects, are forward‑looking statements. Although the Company believes the expecta,ons expressed in such forward‑looking statements are based on reasonable assump,ons, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward‑looking statements. The Company, its shareholders, directors, officers, agents, employees or advisers, do not represent, warrant or guarantee, expressly or impliedly, that the informa,on in this Presenta,on is complete or accurate. To the maximum extent permiIed by law, the Company disclaims any responsibility to inform any recipient of this Presenta,on or any maIer that subsequently comes to its no,ce which may affect any of the informa,on contained in this Presenta,on. Factors that could cause actual results to differ materially from those in forward‑looking statements include market prices, con,nued availability of capital and financing, and general economic, market or business condi,ons.
Investors are cau,oned that any forward‑looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward‑looking statements.
ASX Code: NCR Slide 2
Corporate Strategy
Explore -‐ advance explora,on, studies and approvals at the Doyles Creek and Dellworth projects;
Develop -‐ the Doyles Creek Underground Mine and Training School to generate a posi,ve cash flow and secure a project pipeline commencing with the Dellworth assets;
Acquire -‐ further expand the project porYolio to become a mul,-‐mine coal producer, by targe,ng acquisi,ons that allow the Board and Management team to enhance value.
ASX Code: NCR Slide 3
Snapshot
ASX Code: NCR Slide 4
Market cap: A$180 million
Projects: Doyles Creek Underground Mine and Training School (100%) Hunter Valley NSW
Dellworth Pty Ltd EL 6594 and EL 6812 (100%) Hunter Valley NSW
Port Access (Doyles Creek): PWCS applica7on submiWed August 2011
Explora7on Underway (Savoy Hill): Ini7al 9 holes commenced September 2011
Coal Products: Semi-‐soZ coking, thermal
Explora7on drilling program to date: 40 holes completed (Doyles Creek)
Industry Training School Facility: Australia’s 1st – industry backed with strong strategic partners
Asset acquisi7ve: Targe7ng further acquisi7ons with synergy / value add opportunity
Resource (Doyles Creek): Indicated – 70.5 Mt Inferred – 434.5 Mt Total -‐ 504.5 Mt
Cash: A$19.4 million (at 31/10/11)
Management: Significant opera7onal experience
2011 Achievements to date
ASX Code: NCR Slide 5
Upgraded Doyles Creek coal resource to 504 Mt with 70Mt in Indicated category
Commenced PFS for Doyles Creek Underground Project
Raised $30M by placement of new shares
Maree Roberts, Director of Training School commenced;
Recruited addi7onal key, experienced Opera7onal Management;
Purchased 100% of Dellworth Pty Ltd (EL 6594 & 6812);
Nominated for PWCS Port access for Doyles Creek for 2015;
Purchased 372 ML Hunter River water licence;
Achieved 100% compliance in detailed compliance review of EL 7270;
Commenced drilling EL 6812 (Savoy Hill);
Purchased addi7onal strategic land.
5 appren7ceship placements and a further 4 scholarships granted
Project Loca7ons
ASX Code: NCR Slide 6
Doyles Creek
Savoy Hill
Dellworth
Click to edit Master 7tle style
Drilling on Savoy Hill – EL 6812. (Nov 2011).
NSW Poli7cal Events 7meline
ASX Code: NCR Slide 8
An independent probity review into the awarding of EL 7220 to Doyles Creek Mining Pty Ltd was conducted in August, 2010 at the request of the then State Labour Government. The report by O’Connor Marsden & Associates (dated August 23, 2010) concluded in part:
“...that the then Minister acted within the powers afforded to him under the legisla7on in gran7ng the EL to DCMP. There are a number of examples where direct alloca7ons have been previously made by previous Ministers.”
In September, 2011 an independent third party audit of the Doyles Creek EL was conducted at the request of the NSW Department of Industry and Investment. This was part of a second stage, state-‐wide review of all current ELs ordered by the current NSW Government earlier this year.
“Doyles Creek Mining Pty Ltd was assessed by the independent auditors to have complied with all condi7ons, and as such no remedial recommenda7ons have been generated for ac7oning.”
NuCoal Resources NL (NuCoal, ASX: NCR) notes the introduc,on of a resolu,on into the Parliament by the NSW Government on November 11, 2011 to refer the awarding of EL 7270 to Doyles Creek Mining Pty Ltd (DCMP) to the Independent Commission Against Corrup,on (ICAC).
In an associated ASX release the Company stated-‐ “NuCoal will cooperate fully with any inquiry into the gran7ng of EL 7270. It is in the interests of our 3400 shareholders, 60% of whom reside in NSW, that the ICAC inquiry is conducted in as 7mely a manner as possible.” Importantly, there were no coal resources defined on EL 7270 at the 7me the licence was granted.
Current Drilling-‐ significant progress over 24 months.
ASX Code: NCR Slide 9
Training School Project
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A project to establish a Centre of Excellence in:
o Mining
o Training
o Educa,on
o Research
Doyles Creek Mining Pty Ltd Finance, mine management and opera,on and coordina,on of research, training and educa,on
Hunter Valley Training Company Voca,onal educa,on and training resources and employment
University of Newcastle Research & Development, Undergraduate and Post Graduate educa,on and placement of students
Westpac Rescue Helicopter Service Paramedic training, OHS training and rescue
simula,ons
Doyles Creek Mining Scholarships/Trainees/Appren7ces
ASX Code: NCR Slide 11
o Nine Students from The University of Newcastle have been selected over the past 2 years as recipients of the Doyles Creek Mining Scholarships in Earth Sciences (Geology)
o Trainee Drillers have been employed on the drill rigs used on the project
o A post graduate “Soil Carbon Research Project” sponsored by DCM in conjunc,on with UON School of GeoSciences
o A Trainee Administra,on Assistant employed in Corporate office
o Two trainee explora,on Geologists are employed on the project
o Five Appren,ces were employed in January 2011, in conjunc,on with Hunter Valley Training Company
2012 Milestone Targets
ASX Code: NCR Slide 12
Conclude infill drilling at Doyles Creek
Upgrade Doyles Creek Mineral Resource Statement
Progress project infrastructure requirements
Comple7on of Doyles Creek Project Pre Feasibility Study
Commencement of Doyles Creek Project Bankable Feasibility Study
Ini7al drilling report on Savoy Hill (EL 6812) stage 1 explora7on
Commence drilling on Dellworth (EL 6594)
Training School to be accredited as an RTO
Complete remaining strategic land purchases for services corridors
Competent Person Statement
The Resources estimate is based on information compiled by Dr. Ian Stone, who is a Member of the Australasian Institute of Mining and Metallurgy (102087). Dr. Stone is Manager, Geology of Palaris Mining Pty Ltd. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person, as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Stone has over 30 years experience in exploration and mining of coal deposits. Dr. Stone consents to the inclusion of this Resource Estimate in reports disclosed by the Company in the form in which it appears.
APPENDICES
ASX Code: NCR Slide 14
ASX Code: NCR
Corporate History
o 35 coal mines
o 14 producers
o 27 loading points
o 80 different brands of coal
o 34 end buyers
o 12 countries
ASX Code: NCR Slide 16
Strategic Loca7on – Hunter Valley
Savoy Hill
Dellworth
Doyles Creek Project
Organisa7onal Structure-‐ proven track record
Slide 17 ASX Code: NCR
General Manager Opera,ons
Gary Cambourn
Safety, Training, Environment &
Community Manager Kenny Barry
Director Doyles Creek Training Mine Maree Roberts
Commercial Manager & Company Secretary
Megan Etcell
Engineering Manager Greg Nicholls
Project Manager Leigh Nicholls
Managing Director Glen Lewis
Trainee Administra,on Assistant
Rachel Gibbs
Doyles Creek Project
Dellworth Project
Palaris Mining Howarth Drilling
Administra,on Kelly Williams
Holly Stephenson
Doyles Creek Underground Mine and Training School
ASX Code: NCR Slide 18
o Granted EL 7270 over 2,778 hectares December
2008 for a term of 4 years
o Independently assessed 504.5 Mt JORC coal
resource
o Current resource calcula,on on 5 mineable
seams
o Coal extrac,on planned by underground
longwall mining methods
o Adjacent to United Collieries (Xstrata) and
Wambo Mine (Peabody Energy)
o NuCoal owns 440 hectares of land (for surface
infrastructure) over the explora,on area and has
a signed agreement to purchase a further 280
hectares in 2013. This provides 720 hectares of
land across the explora,on area.
Outcomes to date
ASX Code: NCR Slide 19
DraO mine plans laid out in 5 target seams
>30 year mine life an,cipated for single seam scenarios
Seven poten,al product transport corridors iden,fied
Total capital es,mated at $500m – excludes a Coal Prepara,on Plant for the ini,al 10 years
Economic modelling indicates financially robust project in excess of 20% IRR
Seam Indicated
Resources (Mt) Inferred
Resources (Mt) Total Resources
(Mt)
West Borehole 27.9 28.8 56.7 Whybrow 5.2 91.6 96.8 Redbank Creek 5.6 96.4 102.0 Whynot 31.3 52.4 83.7 Woodlands Hill - 165.3 165.3 TOTAL 70.0 434.5 504.5
Path to Produc7on
ASX Code: NCR Slide 20
EL’s 6594 & 6812
Project Details
ASX Code: NCR Slide 22
Dellworth Pty Ltd
EL 6812 EL 6594
• Licence Area: 20.24 km2
• Licence Renewal: 20 June 2013
• Loca7on: Hunter Valley, NSW
• Licence Area: 12.83 km2
• Licence Renewal: 6 July 2012
• Loca7on: Hunter Valley, NSW
Savoy Hill ini7al drilling
ASX Code: NCR Slide 23